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Sipp group confident over protected rights

The Sipp Provider Group and Association of Con-sulting Actuaries are confident they will secure selfinvestment for protected rights by making joint representations to the DWP next month.

The two bodies are holding their first meeting with the DWP on April 1 and, with consultation on protected rights is still open until May, are optimistic that the Government will see that having a different regime for one pension asset pot flies in the face of simplification.

SPG board member Francis Moore says the group has been lobbying the DWP for three years and he believes that the Government still views protected rights as effectively its money, so takes a paternalistic attitude which restricts investment choice.

Moore says contracted-out-schemes not only have the Government rebates in the pot but also have significant member contributions in most instances.

He wants the investment restrictions, which differ between banks, fund groups and insurers, to be equalised to prevent arbitrage between provider types.

Moore says: “I am confident that we will see a better outcome. The Department for Work and Pensions view is paternalistic and protected rights are clearly not always 100 per cent Government money.”

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